July 13, 2020
Istanbul Rising: Reviving the city’s spirit
Backed by the Metropolitan Municipality and its 30 localities, wıth their storehouse of knowledge and experience, the Istanbul Investment Agency is set to boost the centuries-old business spirit of Turkey’s premıere city
By Husniye Gungor
LOCATED at the heart of Istanbul, the Galata Tower is not only a tourist attraction; it also represents the ancient business spirit of the city. That spirit, which embraced international trade, initiative and investment without discrimination for centuries, is now being infused with a new dynamism. The Investment Agency of Istanbul Metropolitan Municipality, set up last February, has the goal of boosting the centuries-old business spirit of the city, using transparency, participation, sharing and rationalism as guiding principles.
THE QUESTION IS: HOW?
The Agency is the first ‘sub-national’ organization in Turkey, operating under the Istanbul Metropolitan Municipality (IBB). Nihat Narin, its first CEO, says when it was still in the exploratory phase, they looked into other investment agencies around the world to see what works and what doesn’t. From a small city in Kenya to metropolises in North America and Europe, 213 agencies from 181 countries were examined. Successful models in London, Berlin, Tokyo, Singapore and Dublin were dissected and analyzed for potential viability in Istanbul. “But every city,” Narin says, “is different. There is not a single model that fits everywhere.”
DESTINATION FOR PROJECTS
The common thread in all successful investment agencies, however, is paying attention to private sector and free trade dynamics with a global perspective that takes variety as the spice of life. Narin hopes his experience from the corporate finance world can help Istanbul once again become the ‘capital of all trade’. “We have an institutional public structure with a history dating back to 1855,”he says. “Istanbul Metropolitan Municipality and its localities are a great source of experience and knowledge, and the region is an ideal destination for projects.” The Agency plans to leverage this resource for its own areas of interest. The Istanbul Metropolitan Municipality has 30 localities in important sectors, Narin says. The doors of these companies are open to the Agency in an atmosphere of mutual trust, cooperation and harmony. Because of this cooperative approach and international-level competences, the agency can compile comprehensive and accurate information to guide investments. “The value is there; all we do is bring these components together as a coordination body,” Narin notes.
MINIMIZING RISKS
The CEO defines the agency as an essential structure that can pair up potential investments with investors. He believes that capital is there but the risk appetite is low. The job of the agency is to isolate and minimize the risks by sifting through investment opportunities for the most promising, both in terms of what Istanbulites need and what investors want, and enticing investors back to the city by providing support through the investment process.
Just like its counterparts, the Istanbul Investment Agency focuses primarily on four functions: building image and perception, attracting investment, spurring investment and promoting and supporting progressive investment policies.
INTEREST FROM EU, U.S., CHINA
In its first month of operations, the Agency made a jump-start to its activities, holding investment meetings with many international companies, from the U.S., UK, China, Spain and Japan as well as preliminary meetings with Finland, Russia, Hungary, Switzerland, and the Dutch trade missions. With the rise of COVID-19 beginning in mid-March, direct contacts have transitioned to online conversations, Narin explains. “Without one-toone meetings, investment deals are not easy to close. But our negotiations with domestic investors have continued. We restarted face-to-face meetings after the opening up of the economy. There is interest from Europe, America and China.”
SAFEGUARDING PUBLIC WELFARE
The Istanbul Investment Agency uses a combination of corporate finance and international investment promotion models. It determines the investments Istanbul province needs, particularly the municipality, and offers them to the investment and finance world with an eye to both protecting the public good as well as understanding investor’s expectations. The message of the agency is clear, its CEO says: Come and invest in Istanbul with peace of mind in a structure where either you can engage yourself or with the Agency and its local counterparts.
